VINELAND – Legal sparks are flying again over the $72 million Clayville Unit 1 electric power station project, which so far is generating millions in cost overruns but not one megawatt for the city.

C & H Industrial Services Inc., which is the main contractor on the project, filed a civil lawsuit on July 29 against the city of Vineland. The case is in Cumberland County Superior Court.

The lawsuit alleges “breach of contract.” It blames Vineland for lengthy delays to the construction timetable and accuses the city of not paying bills as required under contract and under New Jersey law.

“Vineland has extensively altered, added to, and changed the extent, nature and character of the work on the Project and suspended and delayed the work ...” the suit states in part.

The city responded on Wednesday that officials “strongly believe their claims have no merit.”

“Our first responsibility is to the ratepayers of the Vineland Electric Utility to ensure that they get what they paid for under the terms of the contract,” the statement reads. “ Any delays that have significantly impacted the completion of the Clayville Unit were, and continue to be, caused by actions and/or inactions of C&H Industrial Inc. and our responsive pleadings will reflect the same.

“We continue to work towards the completion of the Unit and look forward to its commercial operation in the near future for the benefit of all Vineland residents and businesses,” it adds.

Attorney John F. Palladino represents C & H and he included in the suit a half-dozen alleged examples of delays caused by the city.

The attorney, who said that more than $4 million in payments is in dispute, also alleges the city has a “grudge” against his client.

The delays include “at least 5 months by failing to provide correct information, the locations to install generator step-up transformers and refusing to compensate C & H for the associated delay” and another four months or more because “Vineland’s specifications directed the installation of incorrect wiring material that had to subsequently be removed and replaced.”

C & H demands in its lawsuit unspecified “compensatory” damages, attorneys fees, interest, and any other remedy a judge may decide to order. The case is assigned to Judge Richard Geiger.

The 64-megawatt station, located off South Lincoln Avenue near Millville, now is a little more than two months past its June 1 deadline to be in operation.

In fact, Vineland first awarded the contract to Infrastructure & Industrial Energy LLC, based in Pittsburgh, Pa. VMEU staff had favored I & I to do the project.

However, C & H challenged the award to its competitor in state court and won. An appellate court decision finally settled the matter in May 2014, allowing construction to start.

According to the suit, delays to the project have forced C & H to absorb added costs for labor, materials, supervision and overhead. That situation is aggravated by failures to compensate the company, it adds.

“Vineland materially breached the contract and violated the duty of good faith and fair dealing by artificially, deliberately, and in bad faith, failing and refusing to pay C & H monies due in a timely manner,” it alleges.

The suit adds: “Vineland’s continued bad faith is motivated in part by its grudge against C & H for displacing its unlawful award of the Project to its favored bidder, I & I, and by its desire to defray blame for its own ineptitude for failing to bring the project to a timely conclusion.”

Vineland has hired other firms to oversee the company’s performance. In recent months, the city has issued multiple contracts to keep other contractors on site until Clayville can be made operational.

Vineland still hasn’t stated a firm date for Clayville to be in operation.

In July, in the course of paying more money to contractors to stay on site, utility paperwork indicated that the city hopes to have Clayville on line in the first week of September.